The Economic Boom of Añelo: A Fracking Paradox in Argentina

Thu Dec 04 2025 21:57:08 GMT+0200 (Eastern European Standard Time)

As Añelo transforms into a bustling hub due to fracking, the question arises: will the wealth from Vaca Muerta truly benefit the entire nation of Argentina?

The small Argentine town of Añelo has seen a profound transformation since fracking began in the Vaca Muerta oil and gas formation. Its population surged by over 60% from 2010 to 2022, and local businesses thrived. However, the overall impact on Argentina's economy raises concerns, as challenges such as inflation and external debt persist. Analysts highlight both the potential and limitations of Vaca Muerta's energy wealth in alleviating the nation's economic struggles.

Mechanic Fabio Javier Jiménez found himself in the right place at the right time. When his father moved their family-owned tyre repair shop to the rural Argentine town of Añelo, it was a small, sleepy place, some 1,000km (600 miles) southwest of Buenos Aires.

There was no mains water or gas, and the electricity supply was constantly being cut off. Then in 2014, fracking for oil and gas started in the surrounding region, and the conurbation boomed.

Fuelled by its new-found energy wealth, Añelo's population soared from 10,788 in 2010 to 17,893 in 2022, an increase of more than 60%, with about 15,000 workers entering the town each weekday.

Añelo is located in the heart of Vaca Muerta, a 30,000 sq km (12,000 sq mi) oil-rich geological formation first discovered in 1931, but only commercially viable after fracking regulations changed in 2014.

This boom has benefitted local businesses like Jiménez's garage, which expanded operations to cope with the increased demand. However, experts warn that the wealth generated might not address Argentina's broader economic issues, which continue to plague the nation despite the surplus of energy exports.

The political landscape, marked by inflation, debt defaults, and slow investment, complicates the realization of Vaca Muerta's potential. Critics argue that the region is suffering from infrastructure deficits, while energy ministers state that political consensus supports further mining initiatives. Nonetheless, environmental concerns persist, and many advocate for a balanced approach to development.